We are not aware of any new laws imposing ownership requirements before a borrower can refinance a mortgage loan. Perhaps you can get more details from the customer, or ask the customer to ask the bank to be more specific.

It is possible that the customer is referring to a requirement in the Illinois High Risk Home Loan Act that applies to loans that are being refinanced after less than a year. That law requires lenders to apply a “net tangible benefit test” when refinancing loans that qualify as “high risk home loans,” as defined in that law (either under the interest rate trigger or the points and fees trigger, as defined in Section 10, 815 ILCS 137/10). It prohibits lenders from charging fees for refinancing a high risk home loan if (1) the refinancing occurs within the twelve-month period after the original loan agreement was signed and (2) the refinancing does not result in a tangible net benefit to the borrower. 815 ILCS 137/45. But even if the borrower entered into the original loan within the past twelve months, and the loan qualified as a high risk home loan, the law does not prohibit the borrower from refinancing the loan (though it does require that it provide a tangible net benefit for the customer).